Commercial Banks Need Not Be Wary of FinTech: FPCCI

Karachi (PR): FPCCI Chief Mr. Irfan Iqbal Sheikh has quashed many unwarranted concerns on FinTech vis-à-vis Commercial Banks.

He added that the Commercial Banks need not be apprehensive of FinTech Companies as these are only facilitating and supplementing the conventional banking; improving financial inclusion; documenting the informal economy and banking the unbanked.

He said that no one can stop FinTech and there are approximately 160 startups in FinTech – many of which are highly successful& sustainable.

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It is pertinent to note that The Federation of Pakistan Chambers of Commerce & Industry (FPCCI) and Islamic Chambers of Commerce, Industry and Agriculture (ICCIA) have conducted a high-profile session – as strategic partners – on FinTech Ecosystem & Opportunities in Pakistan.

ICCIA is headquartered in Karachi Pakistan; and, plays its mandated role in connecting and promoting the business, industry, and trade communities of the Islamic World.

Mr. Irfan Iqbal Sheikh emphasized that FinTech needs to fully capitalize and integrate with the revolutionary and free-to-use Person-to-Person (P2P) money transfer program of the State Bank of Pakistan, i.e. RAAST.

It will only accelerate the penetration of FinTech in Pakistan as 70% of the population remains unbanked as they do not have access to conventional banks and do not have a bank account as a result; in this day and age of documentation & digitalization, he added.

H.E. Khairul Nazran Abd Rahman, Consul General of Malaysia in Karachi, apprised the audience of the giant strides Malaysia has made in FinTech, Islamic Banking, and financial digitalization. He offered his support for the transfer of knowledge and bilateral cooperation in FinTech & Digitalization.

Mian Nasser Hyatt Maggo, immediate past President FPCCI, vehemently criticized the political considerations of keeping Pakistan in the FATF Grey List for arm-twisting; despite, posting compliance in 26 out of 27 action items given to Pakistan in the FATF Action Plan – which has been acknowledged in the latest FATF meeting held on 4th March this year as well.

He pointed out the ever-increasing influence of an unfriendly neighboring country and called for Pakistan’s removal from Grey List. He also proposed that FPCCI might have a Standing Committee specifically on FinTech.

The sessions were attended by CEOs of some of the topmost Pakistani FinTech Companies; renowned Venture Capitalists and tech entrepreneurs.

They shared the details on their regulatory compliance; success stories; financial digital services (FDS); penetration & footprint of FinTech in the masses & SMEs; insights into the future of finance in Pakistan and the reasons why the FinTech Companies do not pose a threat to the commercial banks in Pakistan.